What was the total finance lease cost for Bojangles for the year ended December 29, 2024?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended | ||||||
|---|---|---|---|---|---|---|
| December 29, 2024 | December 31, 2023 | December 25, | 2022 | |||
| Finance lease cost | ||||||
| Amortization of lease assets (a) | $ | 856 | $ | 407 | $ | 319 |
| Interest on lease obligations (b) | 258 | 138 | 162 | |||
| Total finance lease cost | $ | 1,114 | $ | 545 | $ | 481 |
| Operating lease costs (c) | $ | 47,400 | $ | 48,754 | $ | 47,194 |
| Variable lease costs (c) | $ | 672 | $ | 613 | $ | 541 |
| Rental income (d) | $ | (9,609) | $ | (8,939) | $ | (9,955) |
| Years Ended | ||||||
|---|---|---|---|---|---|---|
| December 29, 2024 | December 31, 2023 | December 25, 2022 | ||||
| Finance lease cost | ||||||
| Amortization of lease assets (a) | $ | 1,874 | $ | 3,168 | $ | 1,228 |
| Interest on lease obligations (b) | 355 | 233 | 241 | |||
| Total finance lease cost | $ | 2,229 | $ | 3,401 | $ | 1,469 |
| Operating lease costs (c) | $ | 49,185 | $ | 50,729 | $ | 47,977 |
| Variable lease costs (c) | $ | 672 | $ | 613 | $ | 541 |
| Rental income (d) | $ | (9,609) | $ | (8,939) | $ | (9,955) |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, there are two different values for the total finance lease cost for the year ended December 29, 2024. One table indicates the total finance lease cost was $1,114 (in thousands), while another table shows $2,229 (in thousands). These costs include the amortization of lease assets and interest on lease obligations.
It's important to note that these figures are presented in thousands of dollars, meaning the actual total finance lease costs were $1,114,000 or $2,229,000, respectively. A significant difference between these two values should be clarified with Bojangles, as this could greatly impact the franchisee's financial planning and profitability analysis. Understanding the components of these costs and how they are calculated is crucial for assessing the financial obligations associated with leasing.
Prospective franchisees should carefully review the lease agreements and related financial statements within the FDD to fully understand the nature and extent of these lease obligations. It is advisable to seek professional financial advice to evaluate the impact of these costs on the overall financial performance of a Bojangles franchise.